(Newser)
–
Warren Buffett made waves yesterday when he told the federal government to stop "coddling" him and other wealthy Americans and raise taxes on the rich. His plan would roll back the Bush tax cuts on people who earn more than $1 million and on capital gains and dividends income, and would close the loophole that allows a lower tax rate for hedge fund managers. But how much would it actually help? Quite a bit, writes David Kocieniewski in the New York Times: "The tax increase on all three fronts would generate as much as $500 billion in new revenue over the next decade."

That's about one-third of what the "super committee" has to cut from the deficit. "It’s not going to solve the long-term budget shortfall all by itself," says one economist, "but it could be an important piece of the puzzle." Even so, it likely won't happen, or at least not without a prolonged fight: All six Republican super committee members took a no-tax pledge. "This is not a serious solution for deficit control or getting this dismal economy on its feet," adds Rep. Kevin Brady. "Economic growth does not follow a tax increase. So as much as I respect Mr. Buffett, his proposal fails on virtually every level."

For some reason when it comes to economics I'll trust one of the richest people in the world before I'll try some blow-hard politicians.

MisterPlinkett

Aug 17, 2011 1:52 AM CDT

Newser: the idiot liberal site for idiots. you people don't have even the slightest understanding of economics. you are the downfall of the country.

ChipDavis

Aug 16, 2011 9:41 PM CDT

If one of the richest men in the world is saying, "People like me need to help", then don't you think he thinks the situation is dire ? He's 'old school', meaning he understands that, 'every little bit counts, and is needed'. It looks to me like we need our government to learn some good business practices from someone who lives them !